Economic Growth or Environmental Sustainability? Drivers of Pollution in the Yangtze River Delta Urban Agglomeration in China

Yanqing Jiang and Jinghai Zheng

Emerging Markets Finance and Trade, 2017, vol. 53, issue 11, 2625-2643

Abstract: In this article we examine the effects of foreign trade, economic growth, and inter-city strategic interaction on pollution in the Yangtze River Delta (YRD) Urban Agglomeration in China. We find that when the effects of many factors are controlled for, foreign trade is positively related to pollution intensity in the YRD cities. Our results also support the Environmental Kuznets Curve by showing that when per capita income grows larger, pollution intensity first rises and then falls. We also find that ceteris paribus, a higher level of city human capital intensity is associated with a lower level of city pollution intensity. In addition, our results show that there exists inter-city strategic interaction among the governments of the YRD cities in determining their effort levels with respect to environmental protection.

Date: 2017
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DOI: 10.1080/1540496X.2017.1370580

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